Track daily trends of the Indian stock market. This blog is for discussion of Trends in the national stock exchange (NSE) and trading stocks. Since the Blog is not by a trader - stock market analysis and investment ideas are unbiased.

Friday, April 24, 2009

So the Dip Dop Continues with the bulls gaining upper hand in the last round. The candle yesterday was nice and white. It was achieved with bad results from Reliance – but classified better than expected. All said and done the bulls put up quite a show on an otherwise unexpected way. The market opened flat and tested the crucial spot nifty level of 3300, never dared to test the S1 and bounced back never to look back again. It breached – the 200 DMA – and that has taken six trading sessions for the bulls to do that. Look at the chart for the day – it broke above pivot and got good support from it – running up after the half time. R2 was on the higher end and was tested but could not be sustained. The chart that you see is the 3 min chart so mind you the high point registered is not the one actually achieved. See how the Pivot point was tested before the markets surged up.

As to the global cues for today – the Europe was not good. It closed in red with FTSE closing 0.31% in red, DAX closing 1.22% and CAC closing 0.55% in red. US opened flat –went red for the majority of the time and then recovering close to the market closing to end in green. Dow was up 0.89%, Nasdaq was 0.37% green and S&P was 0.99% green. GM has planned to shout down 13 assembly plants for upto 11 weeks and that is likely to disrupt lives of almost 24,000 workers. In Asia Nikkei has opened and opened red – now recovered to go green – but only 0.5 points or 0.01%. Strait Times too opened red and trying to recover.

On the charts though the pattern is a bullish engulfing pattern. It gets beaten by being a perfect pattern as the opening was a point higher than yesterday’s closing by just one point. Like I said we have broken above the 200 EMA along with 5 EMA and the volumes were almost a replica of what we had day before. Also we are on to making higher top with higher bottom.

The candle has also engulfed last three days of bearish candles too. ADX remains bullish still and so does MACD even though the divergence is a mere a few points. The RSI too is bullish and is going back to its home for couple of days now – overbought zone. Slow Stochastic too has turned bullish and comfortably where it can show a run up for a few days.

The option pain is almost the same option Put / Call ratio has improved in favour of the calls by a bit. But the ratio is still not enough for the markets to take a fall.

Frankly there is nothing against the markets to go higher now. It would be interesting to note the closing of the indices this month. The closing has been advanced by a day for the markets from 30 Apr to 29 Apr. So let us brace up. Four trading days left including today.

Blog Statistics

Subscribe via email

FeedBurner FeedCount

Followers

Oil Price Move

About Me

Retired from Army after 22 years of service. Now pursuing my loves - photography, wildlife (birding in particular) and traveling...I have jumped from Canon to Nikon. (Earlier I had Canon 7D mark ii along with 100-400mm mark ii lens)

Disclaimer

I am no good in stocks -- I do this just for the heck of it. I am not employed by anyone who would have vested interest in my recommending or talking good/bad about any particular stock or company.If you find anything worthwhile -- you are free to take it -- or for that matter lump it.